If a German company wants to establish a subsidiary abroad, it is highly advisable to seek legal assistance from someone who is familiar with both legal systems — that is, both in Germany and in the target country where the new company will be established.

For example, there are many lawyers from Germany who have been practicing in the U.S. for many years. A qualified lawyer will have a ready-made set of templates and will charge a flat fee for processing them as part of the incorporation process, allowing the company to be established at a cost that can be calculated in advance.

The U.S. state in which you establish your subsidiary should be chosen carefully. The popular and sometimes obvious choice of establishing a company in Delaware — with its undeniable advantages — should be carefully weighed against the disadvantages, eg. of the reporting obligations involved. If there is a state that includes a specific target market — for example, Silicon Valley in California — you should carefully consider establishing your company there as well.

Feel free to contact me if you have any questions about the legal structure of the company, choosing a lawyer, or selecting the appropriate state. This also encompasses all other related questions, such as those regarding the first office, insurance, and other topics.

By the way: Nothing I write here constitutes legal advice within the meaning of the German Rechtsdienstleistungsgesetzes. The content has been compiled to the best of my knowledge. I am not a lawyer (but I know a few, if necessary).